Valuation - Inclusion of expenditure incurred towards...

Valuation - Inclusion of expenditure incurred towards advertising, marketing and promotion of the goods - The Tribunal emphasized that for costs to be added to the transaction value under rule 10(1)(e) of the 2007 Valuation Rules, they must be incurred as a condition of sale of the imported goods, either to the seller or a third party to satisfy an obligation of the seller. - The Tribunal found that the appellant was required to undertake advertising and promotion activities on its own account, even as per agreements with the foreign suppliers. These activities, aimed at promoting sales within India, were determined to be post-import activities not directly linked to the conditions of sale or an obligation towards the foreign suppliers. Thus, the Tribunal concluded that these expenses do not qualify for inclusion in the transaction value of imported goods for customs valuation purposes.